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You are here:Home Planning & Environment Active and Recent Planning Studies Private Enterprise Participation Private Participation in Planning

Private Participation in Planning


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What should private sector providers do if they want to be more involved in transportation planning or service delivery?

To get more involved in the transportation decisions made in their areas and to take advantage of opportunities for providing services, private sector operators should become familiar and involved with the procedures, products, and players in transportation planning.  In urbanized areas, transportation funding decisions are made by a metropolitan planning organization (MPO).  MPOs are comprised of state and local officials, including representatives of public transit operators, and are responsible for working with providers of transportation services to prepare long- and short-range plans for delivering those services. These plans form the basis for decisions on improving transportation systems and services.  In rural or non-urbanized areas, transportation planning is managed at the statewide level by state departments of transportation (state DOTs).

Joint regulations issued by FTA and the Federal Highway Administration (FHWA) require the public to be involved in the transportation planning process and specifically require that private providers be given an opportunity to consult in developing transportation plans and programs in both urban and rural areas.  Public involvement processes must be proactive and provide complete information, timely public notice, full public access to key decisions, and opportunities for early and continuing involvement throughout the transportation planning and programming process.

Each MPO is required to prepare a participation plan that describes how interested organizations and individuals, including private providers of transportation, can be involved in the transportation planning process.  Furthermore, MPOs are required to consult with all interested parties as they prepare that participation plan.  Similarly, each state is required to develop and use a documented public involvement process that provides for public review and comment at key decision points. 

What you, the private provider, can do:

  1. Get on the mailing list. Most MPOs and state DOTs maintain a mailing list of all interested parties who have expressed an interest or who have participated in a previous transportation planning process. The mailing list is used to inform the public of meetings and can be used to provide information or copies of various planning documents to the public.

  2. Attend MPO meetings.  The proceedings of MPOs are open to the public, including private sector operators. Private providers can attend meetings of the MPO Board of Directors, as well as the many committees that advise the Board, to offer insight and ideas on how to serve new customer markets or better serve existing riders.  By participating in these meetings, private sector providers may learn the status of transportation plans and funding programs, as well as procedures for voicing their service suggestions and proposals.  In addition, they can use these occasions to make valuable contacts with state and local officials, including public transit providers, for service and contracting opportunities.

  3. Review and comment on the participation plan.  The participation plan documents the MPO’s strategies for engaging customers and stakeholders, both public and private, in the transportation planning and decision making process. MPOs are required by law to involve customers and stakeholders in preparing the participation plan.  Private sector providers should contact the MPO to determine the status of the MPO’s participation plan and to identify all available opportunities for getting involved.

  4. Review and comment on the Plan and TIP.  Two of the critical documents prepared by the MPO are the metropolitan transportation Plan (Plan) and Transportation Improvement Program (TIP) which should encourage, to the maximum extent feasible, the participation of private enterprise.  The Plan outlines long-range (minimum 20 years) mobility needs for the metropolitan area and a fiscally reasonable set of proposed strategies for serving them. The TIP lists transportation improvement projects and services proposed over the next four years – in effect, a near-term menu of potential contract opportunities.  By participating in the planning process or by simply reviewing the Plan and TIP, private operators can gain advance notice of possible future contracting opportunities.  Contact your local MPO or local planning agency to learn more about the planning processes, the availability of the Plan and TIP, and how you can become more informed.  

  5. Participate in the long-range statewide transportation plan and STIP process.  As with MPOs, the work of state DOTs in managing statewide transportation planning is open to the public, including private sector providers. The long-range statewide transportation plan and Statewide Transportation Improvement Program (STIP) serve the same function as the metropolitan transportation Plan and TIP in metropolitan areas, listing projects and services proposed over the long-term and in the coming four years, respectively.  Contact the state DOT or local planning agency to learn more about the statewide planning process, the availability of the long-range statewide transportation plan and STIP, and how you can become more involved.  

  6. Participate in the locally developed and coordinated public transit-human services transportation plan.  Three FTA programs – Elderly and Persons with Disabilities, Job Access and Reverse Commute, and New Freedom – require that projects be derived from a local coordinated transportation plan.   Private providers are encouraged to participate, along with local transit operators, human service agencies, and other stakeholders, to identify the gaps in service appropriate for the elderly, individuals with disabilities, and low income individuals.  They are encouraged to identify ways to provide services for those target populations.

Why should state DOTs, MPOs, and transit agencies work with private sector providers to plan and deliver transportation services?

State DOTs, MPOs, and public transit providers can gain valuable insight on customers’ needs and opportunities for service improvements from locally based private sector providers who may be aware of mobility needs and strategic opportunities to serve those needs, have the equipment and staffing capabilities to serve selected customer markets at lower costs than public providers, and be able to assemble resources and deliver services more quickly than public providers.

Federal laws and regulations require FTA grantees to involve the private sector in the planning process and encourage private sector participation in delivering transportation service.  Federal statutes and FTA regulations mandate that in the annual development of the proposed program of projects, private transportation providers must be consulted; they must be allowed to examine and comment on each project; and those comments must be considered especially when a public provider prepares a final program of projects. 




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